A company has the following assets in a CGU: Land: $650,000 Building: $1,118.000 Equipment $832.000 Assume that due to a change in the competitive environment, the fair value less costs of disposal of the CGU is now estimated to be $2.340,000. The present value of future cash flows is estimated to be $2,300,000. Assume that the fair value of the land has been determined to be $600,000. Required: Prepare the journal entry to record the impairment under IFRS f no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
A company has the following assets in a CGU: Land: $650,000 Building: $1,118.000 Equipment $832.000 Assume that due to a change in the competitive environment, the fair value less costs of disposal of the CGU is now estimated to be $2.340,000. The present value of future cash flows is estimated to be $2,300,000. Assume that the fair value of the land has been determined to be $600,000. Required: Prepare the journal entry to record the impairment under IFRS f no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company has the following assets in a CGU:
Land: $650,000
Building: $1,118.000
Equipment $832.000
Assume that due to a change in the competitive environment, the fair value less costs of disposal of the CGU is now estimated to be
$2.340,000. The present value of future cash flows is estimated to be $2,300,000. Assume that the fair value of the land has been
determined to be $600,000.
Required:
Prepare the journal entry to record the impairment under IFRS. (If no entry is required for a transaction/event, select "No Journal
entry required in the first account fleid.)
Journal entry worksheet
1
Prepare the journal entry to record the impairment loss:
General Journal
Debit
Credit
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